Oyu Tolgoi signs power agreement with National Power Transmission Grid of Mongolia www.ot.mn
Oyu Tolgoi LLC today announced the signing of a new power purchase agreement (PPA) with the National Power Transmission Grid (NPTG) of Mongolia.
Armando Torres, Chief Executive Officer of Oyu Tolgoi, said, “This is an important milestone for Oyu Tolgoi, and underscores the strong support and collaboration between the Government of Mongolia and Oyu Tolgoi – securing our future, and our long term contribution to Mongolia.”
“This agreement gives us access to reliable power to ensure the uninterrupted development of our business, while we continue to work with the Government on establishing a permanent domestic power source. This agreement is the culmination of two years of collaborative work by a joint negotiation team from the Government of Mongolia and Oyu Tolgoi, and is a great example of continuing successful strategic cooperation.”
The PPA between Oyu Tolgoi and the NPTG was executed on the back of the import arrangement between NPTG and the Inner Mongolia Power International Cooperation Co. Ltd (IMPIC).
The Government of Mongolia and Oyu Tolgoi signed the Southern Region Power Sector Cooperation Agreement (SRPSCA) in August 2014, committing to work together to source bridging power from Inner Mongolia.
In accordance with the SRPSCA and Oyu Tolgoi’s Investment Agreement commitments, Oyu Tolgoi remains committed to domestic source of electricity and is deeply engaged with the relevant Government authorities and government selected investors to progress the development of a domestic power plant.
The new arrangement will take effect on 4 July, 2017 for a term of up to six years, with possibility of early cancelation after the fourth year, if a domestic power plant is commissioned earlier.
Published Date:2017-05-15